How large corporation might influence the economic health of a developing country?using the technical words below: living standard, employment,...

The impact of a single corporation on complete economy
will depend on the size of the corporation in relation to the whole economy. The compact
will also be significantly influenced by the nature of business and operations of the
corporation. Variations in the turnover of a large corporation will thus have a direct
impact on the GDP and living standards of the people.

A
corporation with very large turnover is likely to have greater impact on the complete
economy rather than a corporation with smaller
turnover.

The nature of business of the corporation is also
very important. For example, the failure of a large bank which has deposits from a large
population of the economy can have serious direct impact on economy, as well as much
more severe indirect impact due to fear and uncertainty generated by the failure. The
panic created by large banks can start a chain reaction which can lead to steep
reduction in bank deposits. Leading to reduced availability of borrowings for
investments. This can lead to further panic affecting the levels of expenditure
also.

Also a company employing large number of people will
have greater impact on employment in the economy as compared with a technology intensive
company employing only small work force.

A the industry or
the sector within which the corporation also affect the economy by encouraging and
facilitating business of other forms. For example, an automobile company helps the
economy by promoting industries supplying components. Also a corporation, may promote
growth of other sectors in the economy. This generally includes corporations engaged i
infrastructure sectors such as power, and transportation.